Problem 9-22A (Algo) Ratio analysis LO 9-3, 9-4, 9-5 Gibson Company's income statement information follows: Met sales Income before interest and taxes Net Income after taxes Interest expense Stockholders' equity, December 31 (Year 1: $191,000) Common stock, December 31 Year $422,000 116,000 55,160 9,100 297, 192,500 Year 2 $259,000 83,00 62,900 7.790 241,000 172,500 The average number of shares outstanding was 7700 for Year 3 and 6,900 for Year 2 Required Compute the following ratios for Gibson for Year 3 and Year 2 a. Number of times interest was earned (Round your answers to 2 decimal places.) b. Earnings per share based on the average number of shares outstanding (Round your answers to 2 decimal places.) c. Price-earnings ratio (market prices Year 3 $64 per share Year 2,574 per share) (Round your intermediate and final answers to 2 decimal places.) d. Return on average equity (Round your percentage answers to 2 decimal places. fi.e., 0.2345 should be entered as 23.45).) e. Net margin (Round your percentage answers to 2 decimal places. (t.e., 0.2345 should be entered os 23.45).) The average number of shares outstanding was 7700 for Year 3 and 6,900 for Year 2 Required Compute the following ratios for Gibson for Year 3 and Year 2 a. Number of times interest was earned (Round your answers to 2 decimal places.) b. Earnings per share based on the average number of shares outstanding (Round your answers to 2 decimal places.) c. Price-earnings ratio (market prices Year 3. 564 per share Year 2. 974 per share) (Round your intermediate and final answers to 2 decimal places.) d. Return on average equity (Round your percentage answers to 2 decimal places. (ie. 0.2345 should be entered as 23.45).) e. Net margin (Round your percentage answers to 2 decimal places. (l.e., 0.2345 should be entered as 23.45).) Year times Yeot 2 times a Times interest earned b. Earnings por share Price-samnings ratio d Return on average equity Ne margin times 1% %